HBA Report for Spring 2014 – “Insurance in Focus”

With this column on “Insurance in Focus”, my team at Health Benefits Advisors is very concerned that all California employers are sensitive to the financial pitfalls for employers as part of the ACA. Most employers are not aware of the new regulations or the financial penalties associated with the Affordable Care Act.

At HBA, we have developed a “Keeping in Compliance” checklist for you. Even if you do not provide ACA qualified health care benefits, you have requirements under this law.

 Evaluate the FTE (full time equivalent) count for all commonly owned companies to see if you are subject to Pay or Play penalties!

 100+ must be actively counting full and part time

 50 to 99 FTE’s affected in 2015

 2 to 49 FTE’s not affected

 Evaluate each employee’s contribution cost as a % of payroll to assure you are offering financially “Affordable” benefits as required by the law.

 Confirm communication to employees of availability of Covered California (for every employer in California regardless of size and even if you do not provide coverage.

 Every California new hire must be offered a coverage option within 60 days of hire.

And just this month from the IRS; Employers who adopt a strategy of moving their unhealthy employees to the insurance exchanges may be subject to a fine of $100 a day ($365,000 a year) for non-compliance with the law.